Insurance companies may be able to offer allied services to customers following the proposed amendments to the Insurance Act, 1938.
New Delhi. Soon, not only will you get free treatment under health insurance, but the health insurance holder can also get facilities like free gym membership. In fact, after the proposed amendments in the Insurance Act, 1938, insurance companies may be able to offer allied services to customers. For example, the facility of gym membership can come with a health insurance policy and motor repeater services can be provided to those taking auto insurance.
According to sources related to the matter, amendments to the Insurance Act and IRDA Act have been finalized and will be brought before the cabinet soon. Although the time for its presentation in Parliament has not yet been decided, but it can be introduced in the current session of Parliament.
Work on the bill has been completed
The source told Financial Express that the concerns of industry players on composite license have also been addressed and the provision will remain. The work on the bill has been completed and no major amendments have been made in the draft which was placed in the public domain for consultation. The amendments are likely to get the approval of the Union Cabinet by the end of this month.
Proposed to include
a new provision The amendment proposes to include a new provision that will allow insurance companies to provide services “related to or incidental to insurance business” and may also distribute other financial products under regulation.
At present,
the sources said that at present these services are provided in partnership with some other company, but now the insurance company may be able to offer them directly. This revenue will be an additional source.
